On 17 January Sars announced the promulgation of three Acts on the day: (i) Rates and Monetary Amounts and Amendment of Revenue Laws Act 21, 2018; (ii) Tax Administration Laws Amendment Act 22, 2018; and (iii) Taxation Laws Amendment Act 23, 2018.
The only reference to the Customs and Excise Act appears in the Tax Administration Laws Amendment Act 22, 2018.
To amend the Customs and Excise Act, 1964, so as to insert a provision enabling the Commissioner for Sars to implement anti-forestalling measures in respect of anticipated increases in excise duties; to insert a provision providing for the writing off or compromise of any duty, interest, penalty or forfeiture incurred, and owed to the Sars Commissioner for the benefit of the National Revenue Fund.
To amend the Customs Control Act, 2014, so as to effect changes to certain definitions; to amend a provision to ensure that reporting requirements in respect of the departure of trucks due to leave the Republic are adhered to irrespective of whether a truck has cargo on board; to insert a provision providing for the writing off or compromise of debt owed to the Commissioner for credit of the National Revenue Fund.
Insertion of section 114A in Act 91 of 1964
6. The following section is hereby inserted in the Customs and Excise Act, 1964, after Section 114, whilst the existing Section 114A becomes Section 114AA:
‘‘Application of Tax Administration Act for write off or compromise of debt 114A. Chapter 14 of the Tax Administration Act, including any criminal and other sanctions contained in that Act for the enforcement of that Chapter, applies, with any necessary changes as the context may require, to the writing off or compromise of any duty, interest, penalty or forfeiture incurred under this Act and owed to the Commissioner for the benefit of the National Revenue Fund.’’.
Amendment of section 1 of Act 31 of 2014, as amended by section 83 of Act 23 of 2015 and section 70 of Act 16 of 2016
25. Section 1 of the Customs Control Act, 2014, is hereby amended -
“(a) by the deletion in subsection (1) from the definition of ‘‘cargo reporter’’ of the word ‘‘actually’’; and
(b) by the substitution in subsection (1) for the definition of ‘‘FCL container’’ of the following definition: ‘‘
‘FCL container’ means a container containing goods consigned from one or more [than one] consignor to a single consignee;’’.
Amendment of section 71 of Act 31 of 2014, as amended by section 89 of Act 23 of 2015
26. Section 71 of the Customs Control Act, 2014, is hereby amended by the substitution in subsection (1) for the words preceding paragraph
(a) of the following words:
‘‘(1) The on-board operator of a truck due to leave the Republic [with cargo on board] must, at the land border-post where the truck will leave the Republic, report to the customs authority at that land border-post, in a manner as may be prescribed by rule -’’.
Insertion of section 705A in Act 31 of 2014
27. The following section is hereby inserted in the Customs Control Act, 2014, after section 705: “Application of Tax Administration Act for write off or compromise of debt 705A. Chapter 14 of the Tax Administration Act, including any criminal and other sanctions contained in that Act for the enforcement of that Chapter, applies, with any necessary changes as the context may require, to the writing off or compromise of a debt referred to in section 695 owed to the Commissioner for credit of the National Revenue Fund.”
Review
28. “The Minister shall review the amendment to the rate in section 9 of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2018, effective 1April 2018, three years from that date, following an evaluation of its impact on revenue collection and the poor, and shall table a report in Parliament by no later than 30 June 2021.”
Short title and commencement
29. (1) This Act is called the Tax Administration Laws Amendment Act, 2018.
(2) Subject to subsections (3) and (4), and save in so far as is otherwise provided for in this Act, or the context otherwise indicates, the amendments effected by this Act come into operation on the date of promulgation of this Act.
(3) The amendments to the Customs Duty Act, 2014, take effect immediately after the Customs Duty Act, 2014, has taken effect in terms of section 229 of that Act.
(4) The amendments to the Customs Control Act, 2014, take effect immediately after the Customs Control Act, 2014, has taken effect in terms of section 944(1) of that Act.
Insertion of section 58A in Act 91 of 1964
5.(1) The following section is hereby inserted into the Customs and Excise Act, 1964, after section 58: ‘‘Anti-forestalling measures in respect of anticipated increases in excise duties 58A.
“(1) For purposes of this section -
‘‘controlled period’’ means a period leading up to an anticipated increase in the rate of duty on excisable goods, as may be determined by the Commissioner in terms of subsection (5)(a)(ii) for the purpose of applying this section; and
‘‘duty forestalling’’ means the practice of entering excisable goods for home consumption in quantities exceeding the quantities determined, as contemplated in subsection (2), during a period leading up to an anticipated increase in the rate of excise duty, thereby avoiding the payment of the increased rate of duty when that increase becomes effective.
(2) In order to combat duty forestalling in respect of an anticipated increase in the rate of duty on excisable goods, the Commissioner may limit the quantities of excisable goods that may be entered for home consumption during a controlled period to such quantities as may be determined in accordance with a formula prescribed by rule in terms of subsection (5)(b)(i).
(3) No person may during a controlled period enter excisable goods for home consumption in excess of the quantities contemplated in subsection (2), unless the Commissioner approves the entry of such excess quantity in exceptional circumstances.
(4) A person who contravenes subsection (3) is guilty of an offence and is liable on conviction to a fine not exceeding R20 000 or treble the value of the goods cleared in excess of the quantities contemplated in subsection (2), whichever is the greater, and the goods cleared in excess of the relevant quantity shall be liable to forfeiture.
(5) The Commissioner may make rules for the effective implementation of this section, including rules to -
(a) determine -
(i) the kind or description of the excisable goods to which this section applies, taking into account the prevalence of duty forestalling in the particular industry; and
(ii) the controlled period during which this section is applied, which period may not exceed three months; and
(b) prescribe -
(i) the formula to be used for calculating the quantity of excisable goods that may be entered for home consumption during the controlled period, taking into account the average amount of entries for home consumption per product per registered importer or licenced manufacturing warehouse, calculated over a period sufficiently long to reflect seasonal fluctuations; and
(ii) the penalties that may be imposed for an offence referred to in subsection (4).’’.
(2) Subsection (1) takes effect on a date to be determined by the Minister by Notice in the Government Gazette.”